Summary of Underpinning Analysis: Social Security (Modernisation) Amendment Regulations 2026

Good law-making: 9(i)

The importance of consulting, to the extent that is reasonably practicable, the persons or representatives of the persons that the responsible agency considers will be directly and materially affected by the legislation.

Inconsistency identified: NO

Summary of agency analysis

The Amendment Regulations correct an issue in a transitional provision for mandatory reviews introduced in the Social Security (Modernisation) Amendment Act 2026 (Modernisation Act). The Cabinet material, including the Regulatory Impact Statement and addendum, were subject to agency and Ministerial consultation with a broad range of agencies. The Amendment Regulations are assessed as consistent with the principle.

Good law-making: 9(j)

The importance of carefully evaluating:

• the issue concerned; and
• the effectiveness of any relevant existing legislation and common law; and
• whether the public interest requires that the issue be addressed; and
• any options (including non-legislative options) that are reasonably available for addressing the issue; and
• who is likely to benefit, and who is likely to suffer a detriment, from the legislation.

Inconsistency identified: NO

Summary of agency analysis

Refer to the Regulatory Impact Statements and addendum prepared for the Modernisation Act for a detailed evaluation of the mandatory reviews policy. Clients receiving overseas benefits (New Zealand Superannuation, Veteran’s Pension, Orphan’s Benefit, Widow’s Benefit and Supported Living Payment paid to people in circumstances where they are entitled to receive the benefit while overseas) and Childcare Assistance (Out of School Care and Recreation Subsidy and Childcare Subsidy) are subject to periodic reviews to confirm their eligibility and rate of assistance in circumstances where they are entitled to receive them overseas. From 1 October 2026 overseas benefits will be specified benefits subject to mandatory reviews. From 6 September 2027 Childcare Assistance will be a specified benefit subject to mandatory reviews. The Amendment Regulations amends clause 33(2) of Part 16 in Schedule 1 of the Social Security Regulations 2018 to ensure that the transitional settings for existing recipients of overseas benefits and Childcare Assistance apply correctly. The Amendment Regulations are assessed as consistent with the principle.

Good law-making: 9(k)

Detailed plans and preparations for implementation of mandatory reviews of overseas benefits and Childcare Assistance from 1 October 2026 are in place. The Amendment Regulations are assessed as consistent with the principle.

Inconsistency identified: No

Summary of agency analysis

Detailed plans and preparations for implementation of mandatory reviews of overseas benefits and Childcare Assistance from 1 October 2026 are in place. The Amendment Regulations are assessed as consistent with the principle.

Good law-making: 9(l)

Legislation should be expected to produce benefits that exceed the costs of the legislation to the public or persons.

Inconsistency identified: NO

Summary of agency analysis

[Redacted s 9(2)(h)] to specify the initial review start date for mandatory reviews for a specific cohort of overseas benefits and Childcare Assistance when these settings come into force for existing recipients of these benefits as intended by Parliament. This will likely impact on forecast savings from Budget 2025 and is not a responsible use of public funds. The Amendment Regulations are assessed as consistent with the principle.

Good law-making: 9(m)

Legislation should be the most effective, efficient, and proportionate response to the issue concerned that is available.

Inconsistency identified: NO

Summary of agency analysis

The transitional provision in clause 33 of Part 16 in Schedule 1 of the Social Security Regulations 2018 was inserted through the Modernisation Act. Amendment to this clause is the only feasible solution [Redacted s 9(2)(h)]. The Amendment Regulations are assessed as consistent with the principle.

Rule of Law: 9(a)(i)

The law should be clear and accessible.

Inconsistency identified: NO

Summary of agency analysis

The Amendment Regulations are assessed as being clear and accessible to those who are bound by it. They will be available free of charge and published on New Zealand Legislation website besides being notified in the New Zealand Gazette. The Amendment Regulations are assessed as consistent with the principle.

Rule of Law: 9(a)(ii)

The law should not adversely affect rights and liberties, or impose obligations, retrospectively.

Inconsistency identified: NO

Summary of agency analysis

The amendment to clause 33(2) of Part 16 in Schedule 1 of the Social Security Regulations 2018 will come into force on 1 October 2026 and not adversely affect rights and liberties, impose obligations or apply retrospectively. The Amendment Regulations are assessed as consistent with the principle.

Rule of Law: 9(a)(iii)

Every person is equal before the law.

Inconsistency identified: NO

Summary of agency analysis

The Amendment Regulations bind the Crown and apply uniformly to all persons who are subject to it. The Amendment Regulations are assessed as consistent with the principle.

Rule of Law: 9(a)(iv)

There should be an independent impartial judiciary.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Amendment Regulations do not affect the independence or impartiality of the judiciary.

Rule of Law: 9(a)(v)

Issues of legal right and liability should be resolved by the application of law, rather than the exercise of administrative discretion.

Inconsistency identified: NO

Summary of agency analysis

The Amendment Regulations do not confer any powers to make arbitrary decisions, including on the basis of absolute discretion or similarly unconstrained basis. The regulations also do not limit or remove the right to judicial review or appeals. The Amendment Regulations are assessed as consistent with the principle.

Liberties: 9(b)

Legislation should not unduly diminish a person’s liberty, personal security, freedom of choice or action, or rights to own, use, and dispose of property, except as is necessary to provide for, or protect, any such liberty, freedom, or right of another person.

Inconsistency identified: NO

Summary of agency analysis

The Amendment Regulations do not diminish a person’s liberty, personal security, freedom of choice or action, or rights to own, use, and dispose of property. The Amendment Regulations are assessed as consistent with the principle.

Taking of property: 9(c)

Legislation should not take or severely impair, or authorise the taking or severe impairment of, property without the consent of the owner unless-

• there is a good justification for the taking or severe impairment; and
• fair compensation for the taking or severe impairment is provided to the owner; and
• the compensation is provided, to the extent practicable, by or on behalf of the persons who obtain the benefit of the taking or severe impairment.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Amendment Regulations do not involve the taking or impairment of property.

Taxes, fees and levies: 9(d)

The importance of maintaining consistency with section 22(a) of the Constitution Act 1996 (Parliamentary control of taxation).

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Amendment Regulations do not impose any taxes, fees, or levies.

Taxes, fees and levies: 9(e)

Legislation should impose, or authorise the imposition of, a fee for goods or services only if the amount of the fee bears a proper relation to the cost of providing the good or service to which it relates.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Amendment Regulations do not impose, nor authorise the imposition of any taxes, fees, or levies.

Taxes, fees and levies: 9(f)

Legislation should impose, or authorise the imposition of, a levy to fund an objective or a function only if the amount of the levy is reasonable in relation to both:

• the benefits that the class of payers is likely to derive, or the risks attributable to the class, in connection with the objective or function; and
• the costs of efficiently achieving the objective or providing the function.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Amendment Regulations do not impose, nor authorise the imposition of any taxes, fees, or levies.

Role of courts: 9(g)

Legislation should preserve the courts’ constitutional role of ascertaining the meaning of legislation.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Amendment Regulations do not alter the courts’ constitutional role of ascertaining the meaning of legislation.

Role of courts: 9(h)

Legislation should make rights and liberties, or obligations, dependent on administrative power only if the power is sufficiently defined and subject to appropriate review.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Amendment Regulations do not make rights and liberties, or obligations, dependent on administrative power.